News

OFAC settles $3.7 million enforcement action for apparent violations of Syria sanctions

09 March 2026

Key takeaways

U.S. persons may face sanctions liability for providing services, even if they live and work outside the United States.

Sanctions enforcement survives the subsequent lifting of sanctions.

On February 25, 2026, the U.S. Department of the Treasury's Office of Foreign Assets Control (OFAC) announced a $3,777,000 settlement with a U.S. Person to resolve 20 apparent violations of now-lifted sanctions on Syria. Between January 2018 and December 2021, while the U.S. sanctions on Syria remained in place, the U.S. Person provided managerial services to Syrian entities in their role as an executive and board member for four Syrian real estate companies. The enforcement action underscores OFAC's continued willingness to hold individuals who violate U.S. sanctions accountable, including persons who reside outside the United States.

Apparent violations

The OFAC regulations apply to an individual U.S. citizen or U.S. permanent resident alien (green card holder) (“U.S. Person”), wherever located. This includes a U.S. Person who is living and working outside the United States.

While residing outside of the United States, a U.S. Person assumed several executive and board roles with Syrian-incorporated real estate companies that constructed and operated several large-scale luxury projects in Syria. In their role, the U.S. Person provided a range of managerial services, participated in board and shareholder meetings, and was involved in personnel management and marketing activities. Over the course of four years, the U.S. Person provided managerial services to Syrian companies on 20 occasions in apparent violation of section 542.207 of the Syrian Sanctions Regulations (SySR). The U.S. Person only stopped engaging in this conduct after receiving an administrative subpoena from OFAC.

Penalty calculations

OFAC determined that the U.S. Person did not voluntarily disclose the apparent violations and that the violations constitute an egregious case. As such, OFAC identified that a $7,554,000 civil monetary penalty was applicable and ultimately reached a settlement amount of $3,777,000. Aggravating factors included that the person acted with reckless disregard for U.S. sanctions and had actual knowledge that they were providing managerial services to firms organized and located in Syria. Mitigating factors included the fact that the person had not received a penalty notice or a finding of violation from OFAC in the preceding five years.

Key compliance considerations

This case is relevant precedent for individual liability across all sanctions programs. U.S. sanctions programs, whether targeting countries or Specially Designated Nationals, generally prohibit the provision of services unless there is an applicable exemption or general license. The penalties assessed herein should be a reminder for U.S. Persons who are asked to serve on boards or advisory committees of non-U.S. companies, even if those companies are not located in a sanctioned country.

In OFAC's enforcement announcement, OFAC highlighted two important elements of its action against the un-named U.S. Person. First, OFAC emphasized that its prohibitions apply to all U.S. citizens, including those who reside abroad. Even though the U.S. Person resided at all relevant times outside of the United States, the U.S. Person's conduct was prohibited. Second, OFAC underscored that OFAC can and will hold those who violate U.S. sanctions accountable even if such sanctions are later lifted. The fact that U.S. sanctions are no longer in place is not a defense to liability. OFAC will enforce against violations of the sanctions in force at the time of the relevant conduct. Such enforcement may include actions pertaining to now lifted U.S. sanctions on Syria.

Authored by Beth Peters and Elizabeth Shneider.

Next steps

To reduce sanctions enforcement vulnerability, companies should maintain a robust sanctions compliance program that incorporates the following considerations:

Determine whether current and proposed board, officer, fiduciary, and advisory positions held by U.S. persons involve providing “services” to entities in sanctioned jurisdictions or otherwise subject to U.S. sanctions and obtain authorization if feasible or refrain from proceeding.
Ensure the sanctions compliance program covers individual conduct and overseas activities of officers, directors, and secondees serving foreign affiliates as well as employees or executives embedded in non‑U.S. businesses and assess recusal and other procedures.
Escalate internally early for sanctions compliance assessments and consider voluntary disclosure when potential violations surface.
Assess whether the sanctions issues implicate a company’s contractual representations to third parties such as financial institutions and the statute of limitations, even if a sanctions program has been lifted.

Please reach out to any of the listed Hogan Lovells lawyers if you have any questions or would like to discuss further.